The stock of SIS Limited, which was moving in a broad range of ₹430 – ₹530 since July last year, has decisively broke out on Tuesday. This means the bulls are finally gaining enough traction to lift the stock price. Supporting the bullish bias, indicators like the relative strength index (RSI) and the moving average convergence divergence (MACD) on the daily chart are showing fresh uptick. Moreover, the breakout volume is significant denoting that the breakout is less likely to fail.
On the upside, the scrip has the potential to appreciate to ₹600 in the short-term. Nevertheless, from the current level, it could see a minor correction to ₹530 before scaling fresh highs. So, traders can go long at current level and accumulate when the price dips to ₹530 so that the average price would be around ₹540. Place initial stop-loss at ₹512 and alter it to ₹540 when the stock crosses over ₹575. Liquidate the entire longs at ₹600. The price range of ₹600 - ₹610 is a resistance band from where the price could fall.
Note: The recommendations are based on technical analysis. There is a risk of loss in trading